Trump’s 50% EU Tariff Gamble Risks Economic Blowback
Trade wars aren’t just for stock markets anymore—crypto’s watching too. Here’s why a 50% tariff slap could ricochet harder than a meme coin crash.
The Tariff Tinderbox
Punitive measures might boost political clout, but markets hate uncertainty. EU exporters sweating over 50% levies could trigger capital flight—straight into decentralized hedges.
Crypto’s Unintended Windfall
When traditional corridors clamp down, digital assets historically benefit. Stablecoin volumes spiked 300% during past trade skirmishes. This time? DeFi bridges might absorb the shock.
The Irony Play
Nothing fuels crypto adoption like protectionist overreach. Watch for ‘Trump tariffs’ becoming the next ‘China ban’—an accidental marketing coup for borderless money. Just don’t tell the SEC.
Closer: Another case of legacy finance shooting itself in the foot—while Bitcoin wallets reload. *Cue the world’s smallest violin for tariff-bound eurocrats.*
It remains unclear what the US wants from the EU
In a social media post on Friday, Trump listed complaints about EU taxes, regulations, and trade rules that WOULD be hard to fix quickly.
Washington trade experts are fed up because the EU is repeating the same offers as before, and those offers never led to a deal. “Traditional methods haven’t produced a US‐EU agreement under any administration,” said Kelly Ann Shaw, a former WHITE House trade official.
Shaw, now a partner at Akin Gump law firm, said the threat of much higher tariffs “creates an action-forcing event” that will force both sides to decide soon whether they can reach a deal.
From Washington’s view, the Europeans don’t seem to grasp that this round of talks is different and won’t follow the usual give‐and‐take, Reinsch said.
On Friday, EU Trade Commissioner Maroš Šefčovič held talks with US Commerce Secretary Gina Raimondo and Trade Representative Katherine Tai. There was no sign of a breakthrough.
Afterward, Šefčovič wrote on X that “EU‐US trade is unmatched & must be guided by mutual respect, not threats. We stand ready to defend our interests.”
Trump’s efforts to divide the EU could backfire
EU officials wonder why they should give in so much when US and EU import taxes are nearly the same, only about one percentage point apart, and Europe’s VAT works out much like sales taxes in the US.
Brussels also resists giving the US market access that other countries lack, warning it would violate World Trade Organization rules.
Further complicating matters, many of the trade barriers the US objects to are set by national governments, even though EU trade policy is handled in Brussels.
“EU negotiators should hold their nerve,” said Georg Riekeles, associate director at the European Policy Centre in Brussels. He pointed out that Canada and China have met US pressure with strong retaliation. “If the EU is ready to fight back, US bullying is ultimately self‐harmful, and you can MOVE toward a deal.”
But some EU members, such as Ireland and Italy, rely heavily on US exports and have decided against tough countermeasures. Trump may be hoping these splits will weaken Europe’s unity.
Michael Smart, a former congressional trade counsel, warned that trying to split the EU could backfire.
Most EU governments have so far backed the commission’s cautious approach of talking while buying time. They believe that, sooner or later, Trump will eventually back down because his tariffs would end up hurting the US economy.
“One reason markets have calmed is that they’ve already priced in some concessions from Trump,” said one EU diplomat.
Another added, “We don’t make policy decisions on the basis of tweets, at least not on this side of the Atlantic.”
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